MA finds buyers again around 291.56
Mastercard Incorporated (MA) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
MA finished the week -2.23% lower at 295.68 after edging higher $1.09 (0.37%) today on low volume, underperforming the S&P 500 (1.05%). Trading up to $2.44 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 30th, MA gained 1.85% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MA as at Jul 10, 2020):
Friday's trading range has been $5.40 (1.84%), that's below the last trading month's daily average range of $7.61. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MA.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 297.90 (R1). After having been unable to move lower than 290.56 in the previous session, the market found buyers again around the same price level today at 291.56.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the nearby swing low at 290.56 where further sell stops could get activated. Further selling might move prices lower should the market test June's close-by low at 285.15.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Mastercard Incorporated. Out of 610 times, MA closed higher 57.05% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 71.48% with an average market move of 1.80%.